Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresHard
A real estate sales associate receives a cash offer on a listed property. The seller instructs the sales associate not to present any offers below the asking price. What is the sales associate's ethical and legal obligation?
- APresent the offer immediately, as all offers must be presented, regardless of price.
- BPresent the offer only if it is in writing and accompanied by an earnest money deposit.
- CAdvise the seller that all offers must be presented and then present the offer.
- DFollow the seller's instructions and only present offers at or above the asking price.
Show answer & explanationAnswer & explanation
Correct answer: C. Advise the seller that all offers must be presented and then present the offer.
Florida real estate license law (and ethical guidelines) requires licensees to present all offers to a seller in a timely manner, unless expressly instructed otherwise in writing. The sales associate must first advise the seller of this duty, and if the seller still insists on not seeing certain offers, the sales associate must get those instructions in writing. Without written instructions, all offers must be presented.
Why the other options are wrong
- A. While all offers must be presented, the sales associate's duty is to first advise the seller of their obligation.
- B. Offers must be presented regardless of whether they are cash, verbal, or have an earnest money deposit, unless specific written instructions from the seller state otherwise.
- D. Following verbal instructions to withhold offers is a violation of fiduciary duty and license law.
Duty to Present Offers
Florida real estate licensees have a fiduciary duty to present all offers, verbal or written, to their principal in a timely manner.
- Applies to all offers, regardless of price, terms, or form.
- Must advise principal of this duty.
- Only written instructions from principal can release licensee from this duty.
Memory trick: Present 'A'll 'O'ffers, 'A'lways 'A'dvise, 'W'ritten 'W'aiver 'O'nly.